Millet line below the entity sales Shop or will open

Absrtact: 1. Apple builds flat channel sales system, retail side status rise Apple China's channel system is unique in Apple's world, in addition to the official website, the entity channels include direct channels, direct channels and distribution channels. Direct Battalion channel by Apple since

1. Apple builds flat channel sale system, retail end status rise

Apple China's channel system is unique in Apple's global, in addition to its official website, the entity channels include direct channels, direct channels and distribution channels. Direct marketing channels, by the company's own operation, direct shop general construction in the first-line city of the core business circle. Direct supply channels, directly supplied by Apple products, generally refers to the quality of Apple dealers, direct store coverage of the one or two-line city. Distribution channel, refers to the Apple authorized Distributor, nationwide distribution. These include the audio, Eschde, the three traditional state of the Chinese postal agent, as well as three operators of terminal companies.

Now Apple China is in the process of a channel system revolution, to make a big adjustment, to the European and American countries to implement the direct camp model closer. Cancellation of the state, the original state-run business functions by the audio, Eschde, Shenzhou Digital, China-mail Protec, etc. 12 are directly oriented to retail/industry customers authorized distributors. Continue to strengthen efforts to support high-quality distributors, offline direct store, such as vertical channels. Distributor's distribution rights are gradually weakened, priority to supply Direct store, Apple store electric business platform, offline retail channels, such as retail end.

It is reported that at present, Apple has established a more flat in the country's huge sales network: As of the end of 2014, Apple opened 20 direct stores nationwide, while supporting the 41 education channel Distributors, 12 authorized dealers, 49 quality distributors, 13 Industry customer dealers and 125 Campus experience shop. And the action is still in progress.

2. Millet center of gravity back to the line to increase strength, but did not increase the direct shop system construction

According to the publicly released data of the company and its senior executives, millet online sales accounted for: 2012-66%, 2013-58%, June 2014-40%, September 2014 –50%, 2014 year-round-57%. Through the data we found that from the millet mobile phone started on the line, through the line channel and operator channels to achieve a scale breakthrough, the industry is familiar with the line of 37, 46 percentage. In June 2014, millet again increased online sales, so that the 2014 annual statistics back to 2013 years of proportion.

Millet never taboo to learn apple practices, but millet has not been under the line of Direct shop construction (note: Millet home and so more assume the functions of after-sales service, etc.), and even Lei shouted: "Millet mobile phone no physical store." Why is that? Does millet really need a physical store? Mobile phone manufacturers how to Layout line offline channel system? This article will be combined with the line of online development and change glimpse.

The change drive of the channel, and the impact of line on the offline channel

On the whole, the current driving force for channel change comes from two aspects:

1, the industry intrinsic development stage factor

Mobile phone industry, the rapid development of the golden decade has ended, see me in the titanium media, another article "Winter, mobile phone market is also the golden decade is coming to an end?" "Market capacity will maintain low or negative growth, product homogeneity, innovation slowed down, margin decline tends to be meager." When the market at this stage, integration, elimination, transformation is the industry's new normal. Of course, the channel level is no exception.

2. Impact of external Internet power

Internet power has brought new changes to the traditional handset manufacturing industry. From the channel level, mainly reflected in three points:

Transparency of information and transparency of product information and price

The change of consumer behavior, especially the process of user purchase decision and the way of transaction

The rise of online electric business channels and the diversion of offline sales

Next, this article focuses on the second factor.

On the line has been from cock Silk to three points the world has one. According to Saino public reports, 2014 domestic market share of about 20%, more than 80 million departments. 2015 Domestic market overall sales volume growth rate will be less than 5%, according to the online market share will be expected to reach 25% up and down, the total amount of 100 million. From the perspective of development trends, operators channels, offline open channels, online channels =3:4:3 pattern, the three world has one.

Online impact on the offline channel can be summed up as two points: accelerate the distribution of flat, the advantages of the sales category narrowed

1, the rise of the scale of the line and price advantage, is the original offline channel flat accelerator

In the Internet-style, cost-effective PK continuous consumer education, the cost of mobile phone terminals, prices and other media, for the "smart" consumer is transparent. Online compared to the price advantage under the line has become a consumer consensus.

Price advantage is the main advantage on line compared with line. Statistics show that on average, the same phone line price is at least 10% higher than the offline price, and some even up to 20%-30%. This ratio is attractive enough for consumers. In order to keep the product at the bottom of the retail end of the line and the price of the goods in the consumer's acceptable range, the compression level is the inevitable choice of the entity channel.

Over the years has been advocating the development of the flat channel is the compression of intermediate links, that is, the distribution link, the state package-> province-> package. In the cell phone profit, the product is difficult to support multi-level channels of demand for the low-end products, especially. And the compression intermediate, Peer-to-peer directly to the end consumers, has always been the Internet mode of innovation in traditional industries begotten.

From the role of distribution channels, mainly the distribution of goods and funds platform. When the third party Express has already covered to enter County township level, what the manufacturer really needs is not the distribution channel, but a fund platform.

2, online rise, accelerate the retail terminal under the promotion and trading functions weakened, standardized product sales met with cold

The terminal is king, the traditional retail store rival machine manufacturer has three main functions: propaganda, trade and service:

When a brand, a product reputation has started, the user of the brand, product has generated a sense of trust, at this time the brand image of retail stores to promote the role of weakening.

The internet has changed the user purchase decision-making process, the user enters the shop before the decision proportion promotion. When the user has already done the homework through the line before entering the shop, has selected the target product, the offline channel promotion influence greatly reduces.

When the user has adapted/trusted the online transaction, the retail store's face-to-face trading function will be weakened. At the same time, there is a phenomenon that buyers and consumers are separated, many people who do not know how to deal with online transactions through others to help purchase, this phenomenon in many middle-aged and older groups more common.

Customer service is currently online can not be replaced, but still through express and other means, as a line of service offline, is also a kind of O2O.

Due to the lack of practical hands-on experience, online more suitable for standardized products and best-selling goods sales, the two types of products for hands-on experience low demand. Compared to online, there is no advantage on the line, from the point of view, the online best-selling goods are offline sales of the restricted area (under the supply line is willing to increase the explosive products except).

Of course, we also see that consumers are more than 3000+ high value products, personalized/customized products, such as more willing to go through the offline channel to experience after consumption, this is the real store opportunities.